Report: State of Employee Engagement Activities, 2014

Purchase reportWe just published a Temkin Group report, State of Employee Engagement Activities, 2014. This is the second year that we’ve benchmarked the employee engagement efforts within large organizations. Here’s the executive summary:

Although engaged employees are a vital component of any successful organization, we have found that only 50% of employees at large organizations feel engaged. To understand how companies are working to improve these engagement levels, we surveyed executives from more than 200 large organizations. We found that frontline employees are the most engaged, and that while most firms do measure employee engagement, less than half prioritize taking actions based on the results. The lack of a clear employee engagement strategy contributes to the fact that only 19% of companies earned a strong or very strong score on the Temkin Group Employee Engagement Competency Assessment. Employee engagement leaders enjoy stronger financial results and deliver better customer experience than employee engagement laggards, and they also have more coordinated engagement activities, more empowered CX teams, and more committed executives. Compared to 2013, this year more companies have significant employee engagement activities, but overall these activities are performed less frequently. Use our assessment and data to benchmark your employee engagement competencies and maturity.

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Here are results from companies that completed Temkin Group’s Employee Engagement Competency and Maturity Assessment::

1407_EECompetencies

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The bottom line: Companies need to pay more attention to employee engagement

Report: Raising Customer-Centricity Across the B2B Enterprise

1404_B2B CX Case Studies_COVERWe just published a Temkin Group report, Raising Customer-Centricity Across the B2B Enterprise. The research provides in-depth case studies of five B2B firms. Here’s the executive summary:

Temkin Group research shows that good customer experience (CX) drives loyalty with business customers. These same business customers, influenced by their personal experiences as consumers, have raised their expectations in their business-to-business (B2B) relationships. While most large B2B organizations have a low level of CX maturity, our research shows that 56% of them have the goal of delivering industry-leading customer experience within three years. To understand how B2B organizations are improving their customer-centricity, we compiled case studies of five organizations that are raising the bar in CX: Ciena, Crowe Horwath, Fiserv, Genworth Financial, and Oracle. To assess your organization’s CX maturity, use Temkin Group’s Customer Experience Competency Assessment, and compare the results to data from other large B2B firms.

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The report provides 40 pages, including rich details on B2B CX and benchmark data to evaluate your B2B CX against other large organizations. Some of the data points in the report include:

  • 12% of large B2B organizations are in the highest two levels of CX maturity (out of six levels).
  • 8% of large B2B organizations have very good ratings in Compelling Brand Values, the lowest rated CX competency.
  • 79% of large B2B organizations identify “other competing priorities” as a key obstacle to CX success, compared with 65% of non-B2B firms.
  • 56% of large B2B organizations have a goal to be CX leaders in their industries within three years.

The five case studies go deep into how some great practices for infusing good CX across B2B organizations:

  • Ciena: When Ciena began its customer experience journey 18 months ago, it set out to “engage, inform, and transform” the organization. It started its journey by using deep customer insights to hone in on what matters most to customers and now focuses on strengthening its culture and continuously improving.
  • Crowe Horwath: As a professional services firm, Crowe’s employees are its customer experience. Therefore, Crowe focuses its efforts on capturing and sharing all client feedback with its employees, and it uses a variety of tactics to involve them in shaping its CX efforts.
  • Fiserv: While technology underpins the customer experience tools, analyses, and reporting that drive Fiserv’s CX efforts, the company also integrates a human element into its efforts by using employee coaching, performance management, and rewards and recognition programs to engage employees in their work.
  • Genworth Financial: The CX team at Genworth uses a combination of approaches—from customer journey mapping to service dashboards to innovation ideation—to involve employees across the organization in its customer experience efforts.
  • Oracle: Oracle continues to raise customer-centricity across its global footprint by listening, responding, and collaborating with customers to identify and take action on customer experience improvement opportunities.

The case studies highlight practices affecting all four customer experience core competencies:

1406_B2B4CXCompetencies

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The bottom line: B2B firms need to improve customer experience.

Data Snapshot: Social Media Benchmark, 2014

1406_DS_SocialMediaBenchmark2014_COVERWe just published a Temkin Group data snapshot, Social Media Benchmark, 2014This is the third year that we’ve published the benchmark that examines how much time U.S. consumers spend using different types of social media on computers and on mobile phones.

Here’s the executive summary:

In January 2014, we surveyed 10,000 U.S. consumers about how frequently they use social media on their computers and mobile phones, and we then compared these usage rates to analogous data we collected in January 2012 and January 2013. This analysis looks at the frequency with which consumers in different age groups use computers and mobile phones to access Facebook, LinkedIn, Twitter, Google+, Pinterest, Tumblr, and third-party rating sites. We also examine how usage rates vary by mobile phone type.

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Here’s an excerpt from one of the 14 charts in the data snapshot.

1406_SocialMediaAndMobile

Here are some additional findings from the research:

  • After a drop in daily Facebook usage on computers last year, U.S. consumers increased their daily use of Facebook, from 42.5% of the population in 2013 to 46.5% in 2014. The largest increase was with consumers between 55 and 64 years old. This group expanded its daily Facebook usage by nearly eight percentage points.
  • During the same time, daily usage of Facebook on mobile phones surged from 24.7% of U.S. consumers in 2013 to 29.3% this year. The largest growth, 10 percentage points, came from consumers who are between 18 and 34.
  • Daily usage on computers is as follows: 17.7% visit a company’s Facebook site, 13.4% read or update LinkedIn, 10.9% read or update Twitter, 9.8% read or update Google+, 8.3% read or update Pinterest, 7.7% read or update Tumblr, 6.5% read a review on a rating site like Yelp or TripAdvisor, and 5.7% write a review on a rating site like Yelp or TripAdvisor.
  • Daily activity on mobile devices is nearly as high as it is on computers for Facebook users under 24 years old, LinkedIn users under 45 years old, Twitter users under 35 years old, and users of review sites under 45 years old.
  • We examined the usage of social media on different mobile devices. iPhone users are the most frequent daily readers and updaters of Facebook, LinkedIn, Twitter, Pinterest, and Tumblr. Blackberry users are the most frequent daily visitors of company Facebook pages, users of Google+, Tumblr (tied with iPhone), and ratings and review sites.

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The bottom line: Mobile social media is on the rise

USAA and Capital One 360 Top 2014 Temkin Web Experience Ratings

We just published the 2014 Temkin Web Experience Ratings, the fourth year of the ratings. It uses feedback from 10,000 U.S. consumers to rate 222 organizations across 19 industries.

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USAA’s banking business took the top spot and Capital One 360 (formerly ING Direct) earned the second highest rating in the 2014 Temkin Web Experience Ratings, which rates 222 companies across 19 industries. USAA’s insurance and credit card businesses tied for third place.Rounding out the top 13 companies in the ratings are Charles Schwab, Amazon.com, credit unions, TD Bank, U.S. Bank, Sheraton, Ace Hardware, eBay, and Nordstrom.

The award for delivering the worst web experience goes to Coventry Health Care, followed closely by Medicaid. Four of the bottom 14 organizations are health plans and three are TV service providers. The remaining companies in the bottom 14 of the Temkin Web Experience Ratings are Charter Communications, Comcast (TV service and Internet service), Dunkin’ Donuts, Time Warner Cable (TV service and Internet service), Jack in the Box, CareFirst, MetroPCS, Highmark, Adobe, and Wendy’s.

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Here’s how the industries compare with each other:

1406_TWER_Industries

The 2014 Temkin Web Experience Ratings shows that companies have made improvements in web experience between 2013 and 2014. Led by airlines, which increased by nearly 15 percentage points since last year, 17 of 19 industries improved. The two industries that earned lower ratings in 2014 are parcel delivery services and rental cars.

Nearly two-thirds of the 195 organizations that were in both the 2013 and 2014 Temkin Web Experience Ratings improved this year. On average, firms earned an increase of 3.2 percentage points. Eleven companies improved by more than 15 percentage points: Southwest Airlines, Health Net, United Airlines, PetSmart, AOL, Sony, Bright House Networks, Morgan Stanley Smith Barney, Edward Jones, Cablevision, and AAA.

Six companies saw their Temkin Web Experience Ratings fall by 10 points or more between 2013 and 2014: Dunkin’ Donuts, Avis, Hertz, Jack in the Box, Dollar, and Blackboard.

1406_TWER_IncreaseDecrease

Methodology:

The data was collected from an online survey of 10,000 U.S. consumers during January 2014. Quotas were set to mirror the U.S. census data for age, income, gender, ethnicity, and geographic regions of the U.S. population.

Temkin Web Experience Ratings are based on asking consumers the following question about companies with whom they’ve had a customer service interaction during the previous 60 days: “Thinking back to your most recent interaction with the websites of these companies, how satisfied were you with the experience?” Potential responses range from 1= “very dissatisfied” to 7= “very satisfied.” Temkin Web Experience Ratings are calculated by taking the percentages of consumers who respond with a 6 or 7 and subtracting the percentage who respond with 1, 2, or 3.

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Temkin Ratings website
You can view a sortable list of results from the Temkin Web Experience Ratings as well as other ratings on the Temkin Ratings website.

 

USAA and Amazon Top 2014 Temkin Customer Service Ratings

We just published the 2014 Temkin Customer Service Ratings, the fourth year of the ratings. It uses feedback from 10,000 U.S. consumers to rate 233 organizations across 19 industries.

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For the second year in a row, USAA earned the highest score in the Temkin Customer Service Ratings. USAA’s banking business took the top spot and the company’s insurance business tied with Amazon for second place in the ratings. Rounding out the top 12 companies in the ratings are Chick-fil-A, Publix, H-E-B, USAA (credit cards), credit unions, Starbucks, Costco, QVC, and Trader Joe’s.

The prize for the worst customer service goes to Comcast, which earned the lowest two scores in the ratings for its Internet service and TV service businesses. As a clear sign of collective customer neglect, Internet service providers, TV service providers, and health plans earned 11 out of the bottom 13 positions in the ratings.

The remaining companies with the lowest Temkin Customer Service Ratings are Highmark (BCBS), Time Warner Cable (TV service and Internet service), Coventry Health Care, Charter Communications (TV service), Verizon (Internet service), HSBC (credit cards), US Airways, Qwest (Internet service), Cablevision (Internet service), CareFirst (BCBS).

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Here’s how the industries compare with each other:

1405_TCSR_Industry

The 2014 Temkin Customer Service Ratings shows that companies have made improvements in customer service between 2013 and 2014. Led by investment firms, credit card issuers, and insurance carriers, 14 of the 19 industries earned higher average ratings in 2014 than they did in 2013.

The average company improved by 2 percentage-points between 2013 and 2014, with 31 companies increasing by 10 or more points. The companies with the most improvement over last year’s ratings are Humana, Cox Communications, Morgan Stanley Smith Barney, Apple Store, TD Ameritrade, American Family, KFC, Hyundai, and Food Lion.

Four companies saw their Temkin Customer Service Ratings fall by more than 14 points between 2013 and 2014: Coventry Health Care, ACE Hardware, Staples, and Fifth Third.

1405_TCSR_GainersLosers

Methodology:

The data was collected from an online survey of 10,000 U.S. consumers during January 2014. Quotas were set to mirror the U.S. census data for age, income, gender, ethnicity, and geographic regions of the U.S. population.

Temkin Customer Service Ratings are based on asking consumers the following question about companies with whom they’ve had a customer service interaction during the previous 60 days: “Thinking back to your most recent customer service interaction with these companies, how satisfied were you with the experience?” Potential responses range from 1= “very dissatisfied” to 7= “very satisfied.” Temkin Customer Service Ratings are calculated by taking the percentages of consumers who respond with a 6 or 7 and subtracting the percentage who respond with 1, 2, or 3.

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Temkin Ratings website
You can view a sortable list of results from the Temkin Customer Service Ratings as well as other ratings on the Temkin Ratings website.

 

Report: Text Analytics Reshapes VoC Programs

1405_TextAnalyticsReshapesVoC_COVERWe just published a Temkin Group report, Text Analytics Reshapes VoC Programs. The research shows how analysis of unstructured data will disrupt how companies collect and use customer insights. Here’s the executive summary:

Although companies today are investing more resources in their voice of the customer (VoC) programs, a majority of these efforts continue to linger in the early stages of maturity. Unlike many of the less mature VoC programs, which primarily concentrate on reporting metrics from multiple-choice surveys, the more advanced VoC programs focus instead on finding valuable insights to drive business improvements. To get these valuable insights, our research shows that mature VoC programs are actively using text analytics to efficiently process their massive volumes of customer feedback. As its use becomes more widespread, we expect to see companies infuse text analytics across what we call the 6 Ds of VoC Programs: Detect, Disseminate, Diagnose, Discuss, Design, and Deploy. This report identifies 33 best practices enabled by text analytics tools. And as companies can’t revamp their VoC programs with text analytics overnight, we outline the four stages of text analytics evolution: Deploy, Explore, Explain, and Predict.

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The report identifies best practices for using text analytics across the 6 Ds of a VoC Program:

  • Detect: Companies will shift from primarily focusing on “the score” to concentrating more on unstructured feedback.
  • Disseminate: Companies will distribute more informative data to both front-line and top-level managers in real time, which in turn will drive more meaningful actions.
  • Diagnose: Companies will shift from analyzing only one or two top activities to focusing on a continuous web of experience improvements and training.
  • Discuss: VoC insights discussions will evolve from VoC teams only communicating reports one-way to an active discussion of insights and action planning.
  • Design: Customer insights will become more accessible, more reliable, and more comprehensive, which means that designers will rely more heavily upon customer insights during the design phases.
  • Deploy: Deployment of new offerings will involve a rapid refinement process driven by customer insights.

1405_TAVoCPractices

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The bottom line: Text analytics will reshape leading VoC programs

USAA and H.E.B. Top 2014 Temkin Forgiveness Ratings

We just published the 2014 Temkin Forgiveness Ratings, the fourth year of the ratings. It uses feedback from 10,000 U.S. consumers to rate 268 organizations across 19 industries. Congratulations to USAA and H.E.B., which earned the top ratings.

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USAA’s banking business tied for the top spot, while its credit card and insurance businesses were the next two highest rated organizations. There is a sizeable nine-point gap between these leaders and the next companies on the list. Rounding out the top 15 companies in the ratings are Amazon.com, BMW dealers, Chick-fil-A, Apple (for software and retail), QVC, Costco, Lexus, Trader Joe’s, Fujitsu, and Publix.

Ten of the bottom twelve organizations in the Temkin Forgiveness Ratings belong to firms that show up twice Charter Communications, Comcast, and Time Warner Cable are in the bottom group for their Internet service and TV service businesses. HSBC and Citibank are in the bottom group with their banking and credit card businesses. The remaining two companies at the low end of the ratings are Highmark and US Cellular.

1404_TFR_TopBottomHere’s how the industries compare with each other:

1404_TFR_Industry

We also compared the 2013 and 2014 Temkin Forgiveness Rating, here’s some of what we found:

  • Led by retailers and banks, 16 of the 19 industries earned higher ratings in 2014 than they did in 2013. Rental cars and hotels are the only industries to decline.
  • Five companies improved their ratings by at least 20 points between 2013 and 2014: Apple Store, TD Bank, Cox Communications, ING Direct, and Best Buy.
  • Six companies earned ratings that declined by more than 12 points: Scottrade, Blackboard, Advantage RAC, Coventry Health Care, Avis, and Crowne Plaza.

Methodology:

The data was collected from an online survey of 10,000 U.S. consumers during January 2014. Quotas were set to mirror the U.S. census data for age, income, gender, ethnicity, and geographic regions of the U.S. population.

The Temkin Forgiveness Ratings are based on asking consumers the following question about companies with whom they’ve interacted during the previous 60 days: “How likely are you to forgive these companies if they deliver a bad experience?” Potential responses range from 1= “extremely unlikely” to 7= “extremely likely.” Temkin Forgiveness Rating for a company is calculated by taking the percentages of consumers who respond with a 6 or 7 and subtracting the percentage who responded with 1, 2, or 3.

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Temkin Ratings website
You can view a sortable list of results from the Temkin Forgiveness Ratings as well as other ratings on the Temkin Ratings website.

 

Report: The State of Customer Experience Management, 2014

1404_TheStateOfCX2014_COVERWe just published a Temkin Group report, The State of CX Management, 2014. It examines the CX efforts within more than 200 large companies. Here’s the executive summary:

We surveyed more than 200 large companies and found an abundance of Customer Experience (CX) ambition and activity. Most companies have a CX executive leading the charge, a central team coordinating significant CX activities, and a staff of six to 10 full-time CX professionals. Using Temkin Group’s CX competency assessment, we found that only 10% of companies have reached the highest two levels of customer experience, although this does represent a slight increase from last year. Most firms struggle most to master Employee Engagement and Compelling Brand Values. When compared with CX laggards, CX leaders have stronger financial results, enjoy better CX leadership, and implement more successful employee engagement efforts. Executives in companies with stronger CX competencies also tend to focus more on delighting customers and less on cutting costs.

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The percentage of large organizations that have reached the two highest levels of customer experience maturity has grown from 6% in 2013 to 10% this year. During the same period, the percentage of companies in the lowest level of maturity has dropped from 40% to 31%.

1404_CXMaturity

Here are some additional findings from the research:

  • Companies with good or very good ratings in Purposeful Leadership rose from 39% to 45%, the largest improvement for any customer experience competency.
  • The research also revealed a significant focus on improvement. While only 6% of companies believe that their organization currently delivers industry-leading customer experience, 58% have a goal to be an industry-leader within three years.
  • Sixty-five percent of companies have a senior executive in charge of customer experience.
  • More than half of companies have at least six full-time customer experience professionals.
  • Almost two-thirds of respondents rate customer experience with phone agent as good or very good, the highest rated interaction. Less than 30% rate mobile phone and cross-channel experiences at that level.
  • The top obstacle to customer experience is the same as it has been for four years, “other competing priorities.”
  • We compared companies that have strong customer experience maturity with those that are weaker and found that customer experience leaders have better financial results, have more senior executive commitment, and focus more on their organization’s culture.

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The bottom line: Most companies are in early stages of CX maturity, but are getting better

Data Snapshot: Channel Preferences and Cross-Channel Activity Benchmark, 2014

1404_DS_ConsumerChannelPreferenceBenchmark2014_COVERWe just published a Temkin Group data snapshot, Channel Preferences and Cross-Channel Activity Benchmark, 2014. The research examines consumer preferences for using different channels for completing common tasks as well as the frequency of several cross-channel interactions.

Here’s the executive summary:

In January 2014, we surveyed 10,000 U.S. consumers about their channel preferences for performing 11 different activities—such as opening an investment account or applying for a new credit card—and the frequency with which they perform common cross-channel activities. This data snapshot breaks down the results by age, examining how channel preferences and cross-channel activity levels vary across age groups. It also analyzes how cross-channel activity levels differ by mobile phone types.

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A key component of the research examines how consumers would like to complete 11 different interactions with companies. For seven of the activities, using a computer was the most popular or tied for the most popular channel. At the high end, 71% of consumers want to go online to check the delivery status of a purchase they’ve made. Two-thirds of consumers would prefer to go online to update their address on an account, purchase a new book, and check the balance on a saving or checking account.

But consumers do not want to do everything online. Less than one-third of consumers want to go online to open a new investment account or investigate a mistake in their monthly wireless bill. When it comes to resolving a technical problem on their computers or investigating a mistake on their cell phone bills, consumers most prefer talking to someone over the phone. And they want to meet in-person for activities such as purchasing a new auto insurance policy, selecting a life-insurance policy, and opening a new investment account.

Here are some additional findings from the research:

  • Across every age group, consumers most preferred to go online to update their address, check the balance on their savings or checking accounts, check the delivery status of a purchase, and purchase a book.
  • The phone is the preferred channel for more than half of consumers 55 and older who are investigating a mistake on their wireless bill and consumers 65 and older who are trying to resolve a technical issue with their computer.
  • Meeting with someone in person is the preferred channel for more than half of consumers 45 and older who want to open a new investment account, consumers 75 and older who want to purchase a new auto insurance policy, and consumers 55 and older who want to select a life insurance policy.
  • Forty-three percent of consumers check competitors’ prices on their mobile phone when they are in a store.
  • iPhone users are the most likely to do all of the cross-channel activities examined in the research while Windows Mobile users are the least likely (out of the four major mobile phone platforms).

The report has 19 data-filled charts. Here’s an excerpt from the first chart in the report that shows the channel preferences of consumers for 11 different activities (the report also includes details by age breakdowns for all of these activities):

1404_ChannelPreferences

The report also examines the frequency that consumers do five different cross-channel activities (the report also includes details by age breakdowns for all of these activities):

1404_CrossChannelActivities

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USAA Tops 2014 Temkin Trust Ratings

We just published the 2014 Temkin Trust Ratings, the fourth year of the ratings. It uses feedback from 10,000 U.S. consumers to rate 268 organizations across 19 industries. Congratulations to USAA, which earned the top three ratings for its banking, insurance, and credit card businesses. The bottom of the ratings are dominated by TV service providers and Internet service providers. Overall, most companies and industries improved since last year.

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This is the fourth year that USAA has earned the highest trust ratings. The next 10 companies on the top of the 2014 ratings are Lexus dealers, credit unions, H.E.B., Trader Joe’s, Chick-fil-A, Publix, Costco, Amazon.com. BMW dealers, and PetSmart.

At the bottom of the 2014 Temkin Trust Ratings are three TV service providers: Charter Communications, Comcast, and Time Warner Cable. These three companies also showed up in the bottom 10 for their Internet services businesses, along with HSBC (for both credit cards and banking), Qwest, and US Airways.

1404TTR_TopBottom

Here’s how the industries compare with each other:

1404TTR_Industries

Here are some additional analysis from the 2014 Temkin Trust Ratings:

  • Led by credit cards and banking, 17 of the 19 industries improved their Temkin Trust Ratings between 2013 and 2014. Hotel chains were the only industry to experience a decline.
  • The five highest rated industries are grocery chains, investment firms, insurance carriers, retailers, and auto dealers.
  • The five lowest rated industries are TV service providers, Internet service providers, wireless carriers, health plans, and airlines.
  • 180 companies earned higher Temkin Trust Ratings in 2014 than they did in 2013, while only 50 had lower ratings.
  • The five companies with the largest improvement in Temkin Trust Ratings between 2013 and 2014 are CareFirst, T.J. Maxx, Best Buy, Cox Communications, and Apple Store.
  • The six companies with the largest decline in Temkin Trust Ratings between 2013 and 2014 are Holiday Inn Express, Hyatt, Coventry Health Care, Blackboard, Travelers, and Marriott.

Methodology:

The data was collected from an online survey of 10,000 U.S. consumers during January 2014. Quotas were set to mirror the U.S. census data for age, income, gender, ethnicity, and geographic regions of the U.S. population.

The Temkin Trust Ratings are based on asking consumers the following question about companies with whom they’ve interacted during the previous 60 days: “To what degree do you TRUST that these companies will take care of your needs?” Potential responses range from 1= “do not trust at all” to 7= “completely trust.” Temkin Trust Rating for a company is calculated by taking the percentages of consumers who respond with a 6 or 7 and subtracting the percentage who responded with 1, 2, or 3.

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Temkin Ratings website
You can view a sortable list of results from the Temkin Trust Ratings as well as other ratings on the Temkin Ratings website.

The bottom line: Good news: Trust is on the rise

Data Snapshot: Media Use Benchmark, 2014

1403_MediaUse_CoverWe just published a Temkin Group data snapshot, Media Use Benchmark, 2014This is the third year that we’ve published the benchmark that examines how much time U.S. consumers spend using different types of media.

Here’s the executive summary:

In January 2014, we surveyed 10,000 U.S. consumers about their media usage patters and compared the results to similar data we collected in January 2013 and January 2012. Our analysis examines the amount of time consumers spend every day watching television, browsing the Internet (for both work and leisure), reading books (both print and electronic), reading newspapers (both print and electronic), listening to the radio, and using a mobile phone. This data snapshot breaks down the results by income level, education level, and age, paying particular attention to how media usage varies across age groups.

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Here’s an excerpt from the first chart (out of 12) that shows the hours/day that U.S. consumers use different media.

1403_MediaUsageYears

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Report: Employee Engagement Benchmark Study, 2014

1403_EEBenchmarkStudy14_COVERWe just published a Temkin Group report, Employee Engagement Benchmark Study, 2014. This is the third year that we’ve published the benchmark of U.S. employees. (Take a look at our Employee Engagement Resource Page).

Here’s the executive summary:

We used the Temkin Employee Engagement Index to analyze the engagement levels of more than 5,000 U.S. employees, and we found that employee engagement has decreased over last year. As highly engaged employees try harder, recommend the company, help others, and take less sick time, this trend should be troubling for companies. However, employee engagement levels vary across different organizations, industries, and individuals. Companies that outperform their peers in financial performance and customer experience enjoy a considerably more engaged work force. Our research also shows that the real estate sector has the most engaged employees of any industry, while public administration has the fewest.  Additionally, we found that highly engaged employees tend to be frontline employees, high-income earners, and male. Given the significant value of engaged employees, we recommend that companies improve this area by using our Five I’s of Employee Engagement: Inform, Inspire, Instruct, Involve, and Incent.

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Here’s what we found when we examined year-over-year results for the Temkin Employee Engagement Index:

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Here are some other findings from the research:

  • When compared with disengaged employees, highly engaged employees are more than three times as likely to do something good for their employer even if it’s not expected of them, almost three times as likely to make a recommendation about an improvement at work, more than 2.5 times as likely to stay late at work if something needs to be done, and more than two times as likely to help someone else at work.
  • Companies that have significantly better customer experience than their peers have almost 2.5 times the percentage of highly or moderately engaged compared with companies with customer experience that lags their competitors.
  • Companies that have significantly better financial performance than their peers have more than 1.5 times the percentage of highly or moderately engaged compared with companies with financial performance that lags their competitors.
  • Temkin Group found the largest decline in engagement with the youngest group of employees in the study, those between 18 and 24 years old.
  • About 60% of employees in companies with 100 employees or less are moderately or highly engaged compared with only 49% of employees at companies with more than 10,000 employees.
  • We examined employee engagement across 14 industries. At the high-end, 72% of employees in the real estate, rental and leasing industry are moderately or highly engaged. At the bottom of the list, 44% of employees in public administration are moderately or highly engaged.
  • Fifty-nine percent of employees that always interact with customers are at least moderately engaged while only 42% of employees that never interact with customers are equally engaged.
  • Nearly 80% of executives are at least moderately engaged, compared with only 46% of individual contributors.
  • Across all age groups except for those older than 64, males are equally or more engaged than females. The largest gender gap is with 25- to 34-year-olds.

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The bottom line: Improving employee engagement remains a key opportunity for organizations

2014 Temkin Experience Ratings

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We just published the 2014 Temkin Experience Ratings. The report analyzes feedback from 10,000 U.S. consumers to rate 268 organizations across 19 industries. Congratulations to H-E-B, Trader Joe’s, Chick-fil-A, and Publix, the top firms in this year’s ratings:

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You can also download the data for $395.

The Temkin Experience Ratings are based on evaluating three elements of experience:

  1. Functional: How well do experiences meet customers’ needs?
  2. Accessible: How easy is it for customers to do what they want to do?
  3. Emotional: How do customers feel about the experiences?

Here are the top and bottom companies in the ratings:

2014TER_TopBottomOrgsHere’s how the industries compare with each other:

2014TER_Industries2

In this year’s ratings, 37% of companies earned “good” or “excellent” scores, while 25% are rated as “poor” or ”very poor.” Companies with at least a “good” rating stayed flat over 2013, but have grown by 21 percentage-points since 2011. Led by credit card issuers with an average increase of 4.1 points, 15 of the 19 industries earned a higher rating in 2014 than they did in 2013. Only four industries declined over the previous year: Parcel delivery services, retailers, rental car agencies, and hotel chains.

Of the 243 companies that are included in both the 2013 and 2014 Temkin Experience Ratings, 48% of the firms increased by one point or more while 32% declined by at least one point. EarthLink, Regions, Humana, Morgan Stanley Smith Barney, and Capital One improved the most. Coventry Health Care, US Cellular, Marriott, Fifth Third, and Chrysler declined the most.

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Get the Data

Screen Shot 2013-02-24 at 5.42.22 PMDo you want to see all of the data from the 2014 Temkin Experience Ratings? You can purchase an excel spreadsheet for $395…

To view all of our ratings (experience, trust, forgiveness, customer service, and web experience), visit the Temkin Ratings website

Temkin Ratings website

The bottom line: Customer experience is improving, but there’s still a long way to go

Report: What Happens After a Good or Bad Experience, 2014

1402_WhatHappensAfterGoodBadExperiences_COVERWe just published a Temkin Group report, What Happens After a Good or Bad Experience, 2014. The report, which includes 19 data charts, examines which companies and industries provide the most bad experiences, what impact those experiences have on spending, and how the negative impacts of bad experiences can be mitigated by good service recovery. The report also examines how consumers share their good and bad experiences with companies as well as with other people. Here’s the executive summary:

To understand the effect of good and bad experiences, we asked 10,000 U.S. consumers about their recent interactions with 268 companies across 19 industries. Results show that Internet services and TV services are the industries most likely to deliver a bad experience to their customers, while grocery chains are the least likely to. At the company level, Scottrade had the smallest percentage of customers reporting a recent bad experience with the company and Time Warner Cable had the highest. More than half of the customers who encountered a bad experience at a fast food chain, credit card issuer, grocery store, or hotel either decreased their spending with the company or stopped altogether. However, our data shows that a good service recovery effort can help mitigate a bad experience. Unfortunately, many firms—especially in the banking, Internet services, and TV services sectors—aren’t very good at service recovery. In addition to the consequences of bad interactions, we also examined which channels customers use to share their good and bad experiences and how these changed across age groups. We then compared these results to survey responses from the past two years. We also uncovered a negative bias inherent in how customers provide feedback. ING Direct, Residence Inn, and Fairfield Inn have the most negative bias in the feedback they receive directly from customers, while Hy-Vee and Hyundai have the most negative bias on Facebook. 

Click link to see full list of industries and companies covered in this report (.pdf).

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One of the most interesting analyses in the report is the look at how service recovery after a bad experience affects the spending pattern of consumers. Here’s a summary of one of the charts showing just how important it is for a company to recover well after making a mistake:

1402_EconomicsOfServiceRecovery

Here are some other insights from the research:

  • Sixteen percent of consumers who have interacted with TV service and Internet service providers report having a bad experience over the previous six months. Next on the list are wireless carriers, with 12% of their customers reporting a bad experience. At the other end of the spectrum, only 3% of consumers report a bad experience with grocery chains and 4% report having a bad experience with fast food chains.
  • The five companies with the most customers reporting bad experiences are Time Warner Cable (25%), Motel 6 (22%), Coventry Health Care (21%), and Comcast (21%). There were 10 companies with only 1% or less of their customers reporting bad experiences: Scottrade, Chick-fil-A, H.E.B., Whole Foods, ShopRite, ING Direct, Starbucks, Trader Joe’s, Vanguard, and True Value.
  • More than one-quarter of consumers who have a bad experience stop spending with computer makers, car rental agencies, credit card issuers, hotel chains, and software companies. The impact of bad experiences is less costly for parcel delivery services, wireless carriers, health plans, TV service providers, Internet service providers, and grocery chains, as less than 15% of their customers with bad experience stopped spending.
  • The industries that are the best at responding to a bad experience are investment firms, major appliances, retailers, and car rental agencies. The industries that are the worst at responding to a bad experience are TV service providers, wireless carriers, Internet service providers, parcel delivery services, and health plans.
  • Thirty-two percent of consumers give feedback directly to companies after a very bad experience and 23% give feedback after a very good experience.
  • Overall, 25- to 34-year-olds are the most likely to share feedback about their experiences. After a good experience 57% tell a friend directly, 28% share on Facebook, and 18% put a comment or rating on a review site. After a bad experience, 60% tell a friend directly, 31% share on Facebook, and 20% write a review.

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The bottom line: Make sure to recover quickly after a bad experience

Report: State of the CX Profession, 2014

1402_StateOfCX Profession2014_COVER200We just published a Temkin Group report, State of the CX Profession, 2014. This is the fourth year that we’ve examined the roles of CX professionals. In addition, this is the first year that we’ve done a compensation study. Here’s the executive summary:

To better understand the mindset and roles of CX professionals, we surveyed 293 of them and then compared their responses to similar studies we conducted in 2010, 2011, and 2012. Customer experience flourished in 2013, as this year respondents reported an uptick in positive results from their CX efforts, and an overwhelming number of them (98%) believe that customer experience is a great profession to work in. Nearly nine out of ten respondents are actively working on voice of the customer programs, which is a significant increase from last year. In seven out of the 10 CX activities we examined, levels of active involvement by CX professionals have reached an all-time high. Meanwhile, customer service remains the highest focus for interactions. Respondents expect spending and hiring for CX activities to reach an record high in the coming year. On this year’s survey we included our first compensation study. We examined 131 CX professionals from large organizations and found that their medium compensation (salary plus bonus) ranged from $90,000 for mid-level individual contributors to $260,000 for CX executives.

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Here’s the range of  compensation that we found for five groups of CX professionals within large organizations:

2014CXCompensationRanges4

Here are some additional findings from the CX professionals:

  • 98% agree with the statement “customer experience is a great profession to be in.”
  • 38% are likely to look for a new job inside their organization, while 46% are likely to look for a job outside.
  • VoC and customer insight analysis are the areas that most CX professionals work on and both areas have seen double-digit increases over the past year.
  • Two-thirds report that they are involved with customer service interactions, which has occupied the top spot for all four years.
  • 82% agree that their executive team is committed to their company’s customer experience goals, up from 77% last year.
  • The percentage who think that CX will be more important next year then it was this past year grew from 74% in 2012 to 86% this year—its highest level in all four years.
  • 81% plan to put more effort into their CX measurement and metrics, followed by 78% for customer insights and analytics and 73% for voice of the customer programs.
  • The average professional experience across the five groups ranges from 13.0 years for a mid-level individual contributor to 20.5 years for an executive, while their average CX experience ranges from 4.5 years to 11.5 years.
  • 29% of CX professionals who make $150,000 or more per year are likely to look for a new job inside of their company this year, compared with 45% of CX professionals with lower pay.

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The bottom line: The CX profession is thriving.

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